ASX Today, page-84

Underwriter will not participate with SP 10% below the priority offer price.

Sell off now I think will be attributed to:

1. Failed CR
2. Speculative investors selling off in time for their much speculated Xmas presents happy with their current gains.
3. Despite their videos and wave of announcements SAS has no way to spur on investor buying because its all old news.

The only fundamentals that have actually changed is an additional 5mil on their balancesheet making the stock the cheapest its been in a long time PB ratio wise.

The only reason SP is dropping is from the drop in investor sentiment.

I think the only way that this will stabilise is of two ways:


1. The price stabilises of a technical level. Strongest being the 50-40c support line in my opinion
2. Investor sentiment on this stock is restored as launch date nears

In relation to what the 2m capital short fall will mean, I believe it just means that in the future the next CR will need to be a little sooner than they anticipated.   Management have done the right thing.  Share holders should be pleased that management managed to raise 5mil through a placement at 8.5c  especially given the SP is now 7.5c  

This means that asset wise all Share holders are better off. I feel they did the priority offer more as a formality to give current shareholders the option at least to participate at the what once a discount. If they had not done this there would have been a potential shareholder backlash at management angry about their ownership becoming diluted with no option to participate even if they had wanted to.  

The lesson I think here is not for SAS but the investors on here. People say a lot of things on here acting all bullish but when push comes to shove and its time to put their money were their mouth is it can all change very quickly.